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A person playing poker at a casino
The North West province is losing more than R10 million annually to illegal gambling, a significant blow to the local economy. According to a report by the Financial Intelligence Center, the illegal gambling industry prevents the government from collecting taxes and levies, which could otherwise be used to create jobs and support socio-economic development in the region.
The North West Gambling Board is working to combat this issue, with recent operations leading to the confiscation of illegal gambling machines in Vryburg and Lichtenburg.
Boitumelo Gcalinge, acting CEO of the North West Gambling Board, explains, “Last week we went to Vryburg and Lichtenburg and we confiscated a lot of illegal machines because these illegal machines are just choosing the place and going everywhere. It is a concern for us as the province because we are losing a lot of focus on that. In October, we seized 267 illegal machines.”
In a bid to counter the effects of illegal gambling, the North West Gambling Board has granted Sunbet a license to operate as a bookmaker in the province, specifically at Sun City in Rustenburg.
Sunbet’s entry into the online betting market is expected to generate new job opportunities and stimulate the provincial economy, as well as support local businesses.
Sunbet CEO Simon Gregory highlighted the positive impact the company will have, saying, “We are the province with gaming taxes which we have been paying for a couple of months, and these will be added to the municipal fiscus. We also have a range of developments and projects. We will employ a range of North West people in our call centers, so it will directly impact some communities we are involved with.”
The latest national gambling board report indicates that South Africans placed R418 billion worth of bets during the 2023/24 period, reflecting an 80% increase from R233 billion in the 2021/22 period.
However, despite the growth in the national gambling industry, the North West continues to struggle with the challenges posed by illegal gambling.
North West Economic Development Department MEC, Bitsa Lenkopane, expressed optimism that the new licensing agreement will help boost the provincial economy.
“The North West government relies on entities like the Gambling Board to mobilize investments, especially in the form of licenses, which will help change the status of our provincial economy. We are excited because the last time I engaged with the licensees, this was one of the issues they raised, especially coming out of the challenges caused by COVID. We must allow online operations to move forward.”
In response to the ongoing issue of illegal gambling, the North West Gambling Board is encouraging residents to report illegal activities in their communities to help reduce the impact and support the growth of the legal gambling sector.
